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Duke Energy, partners to build $5B gas pipeline from WV to NC

Posted September 2, 2014

— Duke Energy and Piedmont Natural Gas have selected Virginia-based Dominion to build a massive natural gas pipeline to eastern North Carolina from West Virginia.

The 550-mile "Atlantic Coast Pipeline" project, as it is being called, will cost as much as $5 billion.

The 42-inch pipeline in West Virginia and Virginia and the 36-inch pipeline in North Carolina – officials said the North Carolina segment will be entirely underground – will be 45 percent owned by Dominion, 40 percent by Duke, 10 percent by Piedmont and 5 percent by AGL Resources.

The project would provide North Carolina with a second gas pipeline. The first transports natural gas from the Gulf Coast into western and central portions of the state.

"To enhance reliability and energy security, Duke Energy’s and Piedmont’s solicitation sought proposals for a new, second natural gas pipeline that would transport additional large-scale supplies – from different sources – into the state," the companies said in a joint statement.

The natural gas will come from the Utica and Marcellus shale basins in West Virginia, Ohio and Pennsylvania.

"You need energy sources that meet peak demand needs of commercial and industrial customers. We're not just talking about residential customers here," said Gov. Pat McCrory, a former Duke manager.

"Having greater availability means, when demand is at its highest, we can insulate our customers from some of these price spikes you sometimes see, as we did during the polar vortex back in the winter," Duke spokesman Jeff Brooks said.

McCrory emphasized the economic impact of the project, saying pipeline construction would create about 740 jobs and operations would require 52 workers. His office estimated a $680 million boost to the state economy from the pipeline.

"We've lost some companies in the past because of our lack of access to natural gas and because of the high cost of power – or the higher cost of power in this part of the state than other parts of the state – and that's being corrected now, and that's great news," he said.

The pipeline, which is expected to be operational in late 2018, still needs to be approved by the Federal Energy Regulatory Commission. Dominion is expected to seek approval by 2016.

Duke is increasing its reliance on natural gas to power its generator plants as it shifts away from coal. It now operates five natural gas-powered facilities in North Carolina. Another will open in South Carolina in 2017.

“Natural gas is increasingly important for advanced electricity generation, contributing to significantly lower greenhouse gas and other emissions. The project will also provide more reliable access to new sources of natural gas, keeping consumers’ energy costs down – even during the coldest and hottest weather,” the pipeline owners said in a statement.

56 Comments

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  • nonPC Sep 3, 2014

    People astound me...you want solutions and then complain when they come about...you dont like fracking, well this is a way to limit it in the state...you want safer transportation of fuels, well this is the safest way there is until spock comes and develops a transporter...you want a stronger economy, well first you need to develop the appropriate infrastructure. If you have a better idea, well then run for office.

  • erik9 Sep 2, 2014

    Very sad. Gas is such an antiquated technology. They had gas in London before they had electricity. Gas is dangerous and it supports fracking which pollutes our water supply. If you have gas in your house you need to install a Carbon Monoxide detector. I am sorry my tax payer dollars have to go to this.

  • outdoor592000 Sep 2, 2014

    Great news! Bring it on.

  • Tim Wallace Sep 2, 2014
    user avatar

    View quoted thread


    We are not, we are about to begin exploring for natural gas. No one knows for sure what is in the ground. If the exploration pans out, then they may start drilling production wells. If that happens, it will be years, if not decades, down the road.

  • Bill Mooney Sep 2, 2014
    user avatar

    LICEBTOKLAS SEP 2, 12:15 P.M.

    ALICEBTOKLAS: "I'm a bit confused here. I thought we were about to start producing gas. Why are we spending this much to bring more into the state?"

    Because geologists say there seems to be very little natural gas in NC but there is a glut in PA and WV.

  • Christopher Rose Sep 2, 2014
    user avatar

    This will be great if it means we can shut down the last of those nasty coal plants here.

  • Ronald Nunn Sep 2, 2014
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    View quoted thread


    Don't count on it. Who do you think is really going to pay the $2B portion that Duke is shelling out for this pipeline? The consumers. You really don't think that Duke energy is going to eat the costs for all this.

  • Tug Boat II Sep 2, 2014

    SOLAGAIN while I agree with your comment about cleaning up the current coal ash spill, remember a company this size doesn't operate on only one type of energy at a time, I think the use of Natural gas is much cleaner than coal is.

  • mike275132 Sep 2, 2014

    View quoted thread



    Don't have to.
    The Democrats and Obama are trying to cut off all fossil fuel production. Or as Barack Hussein Obama told the SF Chronicle in 2008:
    “Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket, regardless of what I say about whether coal is good or bad, because I’m capping greenhouse gases,” Obama said. “Coal power plants, natural gas, whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money onto consumers.”

  • Kenny Dunn Sep 2, 2014
    user avatar

    I'm a bit confused here. I thought we were about to start producing gas. Why are we spending this much to bring more into the state?

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